+0.12 (6.38%)
On Friday, CNIT saw a pretty big boost at reasonable volume (350k+ shares traded), and played within the predicted range of $1.85 to $2.13 (see http://tradecnit.blogspot.com/2011/07/new-range.html). The weak market isn't helping, of course, but $1.85 seems to be a pretty strong area of support for the stock (though earnings might take it below, if only temporarily, as speculation can drive huge movements in small cap stocks), and $2.10-$2.20 will continue to be a big area of resistance unless again the earnings report shows so much strength and high future expectations to warrant a break (my guess: unlikely).
See how well the previously established range worked out on Friday:
I anticipate that in the next couple of days, as we get closer to the earnings announcement on August 10, volume will be at least 300k and possibly higher. There will be many opportunities to trade the range and possibly also some opportunities to grab shares at a cheap price if the stock gets oversold for some reason. EPS may be lower than expected if the earlier announcement about Q2 contracts was a hint of weakness, but the real news, as usual, will be whether the company discloses positive or negative guidance about the remainder of the year. Refer to this past post for more analysis on the upcoming earnings release.
The only recent news I've seen is this article on SmallCap Network suggesting CNIT is one of the stocks to buy in the current overall market selloff. I would tend to agree. There's huge upward potential for CNIT.
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